Why the Fertilizer Industry Matters to Canada

The only connection most Canadians have with the fertilizer industry is selecting some of its products to make their lawns greener and their gardens more bountiful. Yet as popular as gardening is in Canada, it is unlikely many people give fertilizer a second thought.

For that reason, the Canadian Fertilizer Institute wants Canadians to know more about the importance of fertilizer. In its many varieties, it is a key ingredient used by farmers in the production of our food. The companies that make fertilizers are a significant component of the Canadian manufacturing sector creating jobs and paying taxes. As well, the industry actively promotes responsible use of its products and supports efforts to reduce greenhouse gas emissions.

The industry produces about 24 million tonnes of nitrogen, potash, and phosphate fertilizers annually in some of the most technologically advanced and safest facilities in the world. Its economic activities contribute $76 billion annually to the national economy, with domestic farm gate sales valued at about $42 billion a year. Canada exports fertilizer materials to more than 70 countries including 95% of our potash production.

About 12,000 Canadians are employed directly by the fertilizer companies, working in mines, production plants, laboratories and farm supply outlets.  Many more jobs exist in related supply and service industries, such as road, rail and marine transport and food processing. Fertilizer is the third highest volume commodity shipped by Canadian railways. Potash producers alone pay $300 million a year in federal and provincial taxes.

However the industry is important for more than its economic contribution. During the last 40 years, the use of fertilizers, precision application methods and other agronomic technologies have enabled farmers to triple crop production on a smaller land base. That makes up for farmland lost to the expansion of our cities and towns and saves habitat for wildlife.

As plants and crops grow, they take nutrients from the soil. A balanced supply of nitrogen, phosphorus, potassium and sulphur keep soil fertile and able to grow healthy crops in the future. The ingredients in all fertilizers are natural products and are identical to nutrients found in manure or compost. However fertilizers can be applied with more control to meet the nutritional needs of plants and crops and protect the environment.

In fact, without using crop nutrients to keep arable soils around the world productive, it is estimated the amount of farmland would have to increase by 50% to supply enough food for the population of the globe. Put another way, fertilizer allows us to feed 3.5 billion people on the world's existing arable land. Without fertilizer nutrients, either the 41 million square kilometres of wildlife habitat around the world would have to be seriously reduced or there wouldn't be sufficient food for more than one-third of the global population.

The fertilizer industry works to protect the environment in other ways. It is a big energy consumer and has been working hard to reduce its greenhouse gas emissions as part of efforts to slow the impact of climate change. Since 1993, the industry has achieved a 10% reduction in emission levels even though total production has grown by 39%. These improvements make the Canadian fertilizer industry one of the most efficient in the world. Compared to other nitrogen fertilizer producing regions, Canada is 7% better than the global average.

Farmers are also helping to reduce greenhouse gas emissions. Applying nitrogen fertilizers correctly reduces the amount of nitrous oxide emissions into the atmosphere. As well, agriculture lands can play a key role in absorbing carbon dioxide from the air and storing carbon in the soil in a process called sequestering. As crops grow they absorb CO2 from the atmosphere to obtain the carbon they need to produce leaves, stems, roots and grain. Fertilizers and other nutrients enhance this process by increasing crop growth and therefore the amount of carbon dioxide transferred from the air into the ground. Canada's forests and agricultural soils have the potential to sequester about 25 million tonnes of carbon over 10 to 25 years.

The industry also promotes proper fertilizer use to protect the food supply and the environment by helping farmers use fertilizers in an environmentally responsible manner while achieving the maximum economic yield from their fields. The Canadian Fertilizer Institute has helped establish the Crop Nutrients Council and the Fertilizer Safety and Security Council to promote proper fertilizer use. Our goal is to nourish the earth, replenish the soil and grow healthy and prosperous communities.